HP develops many different hardware components and software related services to sell in market. At first they developed electronic test components and now they are ranked 4th which shows the immense growth in Information Technology market. Hewlett-Packard has corporate spin off as Agilent Technologies with its measuring bio-analytical and electronic components, in Political Factors For a multinational firm to operate, one has to take care of the political rules and regulations of home and operating countries.
The growing economy accelerates corporate spending and HP is well positioned to benefit from it. The company has increased its investments in the market and expanded product and service offerings, especially its enterprise business and services divisions. Strategic expansion into Chinese market may result in a strong competitive advantage for the business in the near future.
It is also one of the major providers of service network products. The company has a significant market reach all over the world in nearly all of the markets it operates. This has resulted in a strong brand reputation. Although slowly, HP has been diversifying its product portfolio and moving from its main Personal Systems business to more profitable and lucrative enterprise solutions and services business.
The company now offers thousands of different products and services. Weaknesses Poor competency in acquisitions. Over the last 10 years, HP has acquired at least 50 technology companies. This acquisition has revealed how incompetent HP was when acquiring the company.
No other HP competitor has experienced such an acquisition failure in the decade. HP still heavily depends on sales from PC, especially laptops. The market for PC has matured and is expected to grow very slowly or even decline after a few years.
Poor presence in the tablet market. The tablet market has been growing and is expected to grow in double digits over the next few years. Most of other technology businesses have successfully introduced their products in the tablet market and have enjoyed huge income and profit growth.
Although HP had its TouchPad tablet model and later introduced its Slate series tablets into the market, the company has failed to offer an attractive product for consumers.
As a result, the business experiences losses and is unable to compete successfully in this lucrative market with companies like Samsung and Apple.
Opportunities Expand services and enterprise solutions divisions. The company should focus on growing these divisions as they promise better growth opportunities and higher profit margins.
Increasing demand of cloud based services. Currently, HP is offering many services related with cloud computing and is well positioned to benefit from the growing market.
Acquisition of more technology related patents. HP has a lot of free cash that could be used to acquire companies holding the necessary technology patents. With strengthened patent portfolio, HP would be able to compete with the rival firms in the table market.
Threats Retaliation by incumbent firms in software services. Profit margins are high in the market of enterprise software solutions and HP might face stronger than expected competition from incumbent firms such as Oracle or IBM.
Slowing growth rate of the laptop market. Growth rate of the computer market is slowing down and in the near future the markets will become saturated.
The company faces intense competition from rivals like Acers, Apple, Dell, Lenovo or Samsung in terms of price, quality, brand, technology, distribution channels and range of products. Besides, customer needs are changing and now customers are keener to buy tablets or smartphones than new laptops.
Therefore, it will prove hard for HP to compete in personal computers market and continue to grow its market share. The serious threat that HP and the other tech companies are facing is a rapid technological change.
Companies are under the pressure to release the new products faster and faster. The one that cannot keep up with the competition soon fails. This is especially threatening for HP as the company is already behind its rivals in terms of quality, price and technological advancement of some of the products.
Best Global Brands PESTLE Analysis of HP. Hewlett-Packard also commonly known as HP, located in Palo Alto, California, is an American multinational informational technology firm which provides the developed products and services to customers such as SMEs (Small and Medium Enterprises), large enterprises and government.
Pestle Analysis of TCS; Pestle. Looking for Hewlett-Packard SWOT analysis for ? Click inside to find out about HP’s strengths, weaknesses, opportunities and threats.
joint venture (Yokogawa-Hewlett-Packard) in to market HP products in Japan. HP also acquired The Sanborn Company in allowing it to enter the medical field. Hewlett Packard Enterprise Company PESTEL analysis is a strategic tool to analyze the macro environment of the organization.
PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of . The following analysis will be taken from Hewlett-Packard’s (HP) operations within the mobile technology industry.
In this question that author will be using a PESTEL framework as well as Porters five forces framework. Hewlett-Packard operate in more than countries (Hewlett Packard HP Hewlett-Packard is studied in terms of its stp, swot analysis and competitors along with tagline, USP and sector.